Question

What do descriptive, predictive, and prescriptive models assume?

1) Descriptive models assume that historical data can be used to understand past events and trends.
2) Predictive models assume that patterns in historical data can be used to make predictions about future events.
3) Prescriptive models assume that optimal decisions can be made based on the analysis of historical and predictive data.
4) All of the above

Answer 1

Descriptive models assume historical data can explain the past, predictive models assume patterns can predict the future, and prescriptive models assume optimal decisions can be made based on historical and predictive data.

Step-by-step explanation:

Descriptive, predictive, and prescriptive models make different assumptions:

1. Descriptive models assume that historical data can be used to understand past events and trends.
2. Predictive models assume that patterns in historical data can be used to make predictions about future events.
3. Prescriptive models assume that optimal decisions can be made based on the analysis of historical and predictive data. All of the above is the correct answer because these assumptions collectively cover the different purposes and uses of these models.